By Commission of the European Communities
The "HERMES" ecu approach of types is featured during this publication. the program was once arrange on the initiative of the fee of the ecu groups (Directorate-General for technological know-how, examine and Development). It comprises a chain of medium-term, macrosectoral econometric versions during which strength performs a unique position as a construction issue. the several versions are interlinked by means of a bilateral movement module, which describes for every product the exchange among the entire neighborhood nations taken in twos. the us, Japan and 5 zones are represented during this by means of simplified models of the Commission's COMET version. This quantity is designed to assist the reader to appreciate and interpret the varied reports that have been undertaken with assistance from the HERMES approach. Economists and researchers may still locate useful details and figures, with a typical nomenclature, at the economies of the various nations, either on structural information and on fiscal operators
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Both methods have been used. 3 Simulation generation model result interpretation The apparent substitutability between factors stems from a triple modification: first, the effect of measurable substitution on the isoquant of the ex ante production function corresponding to technologies available for the new investment; second, the effect of the substitution coupled with selective scrapping of generations of capital deemed to be definitively nonproductive; and, third, the effects of utilisation adjustment of broad-margin factors following variations in real production; this third factor does not arise as a result of substitution in the strictest sense of the term because it is independent of the relative costs of production factors; that said, it does 34 A.
In effect, this condition is attenuated in this instance for two reasons: first, the marginal conditions apply exclusively to the final vintage of capital goods and it is very possible that an enterprise will come up against market constraints which will cause marginal conditions to change. And, second, there is a link with the consistency of added value apportioned between labour and capital - it is acknowledged, in fact, that this apportionment is consistent when a productivity gain (on average) is attributable to the factor which records it.
D'Alcantara and P. Zagamé Food, beverages, tobacco Clothes and shoes Rent Domestic fuel 0 Domestic electricity Domestic services Furniture, fitting and household equipment Group I: j Essential functions Group II: Transport and communication Overall Consumption f Group III: Health and recreation << < Vehicle purchases and transportation equipment Petrol and oil Transportation services Telephone and postal communications Medical expenses and health-related expenditures Recreation, entertainment, education and culture Hotels, restaurants, cafes, financial services, travel Expenditures abroad Fig.
HERMES by Commission of the European Communities